MPs launch official inquiry into universal credit as criticism grows
Having done some work on the impact of employability schemes I have grown to like some of the additional flexibility offered by universal credit – particularly the fact that it provides a tapered approach to the loss of benefits for those getting part time work rather than the older approach of the 16 hours cliff edge after which all benefits were lost. This story, and there are many rural dwellers facing the challenges set out here. Has made me think again. It tells us:
MPs have launched an official inquiry into universal credit amid growing concerns that design flaws in the new benefits system are leaving thousands of low-income claimants facing eviction and reliant on food banks.
The Commons work and pensions committee said it was compelled to launch a full investigation after mounting evidence that built-in payment delays and administrative blockages were creating severe problems for claimants and landlords.
A Guardian investigation this month found widespread evidence that thousands of tenants on universal credit were running up rent arrears and debts because they could not manage the minimum 42-day wait for a first payment.
Landlords have also criticised the system, with private landlords warning that they will not let to universal credit claimants because of the high risk of rent arrears and problems navigating byzantine official bureaucracy.
Surveys by housing associations have found that up to nine in 10 tenants on universal credit either run up rent arrears or increase the level of pre-existing arrears because so few are equipped to cope with long waits without income.
Frank Field MP, chair of the work and pensions committee said: “Huge delays in people receiving payments from universal credit have resulted in claimants falling into debt and rent arrears, caused health problems and led to many having to rely on food banks.”